Optimize your collateral utilization strategy with automation

Financial institutions and broker dealers face operational complexities in the competitive world of collateralization. As they navigate risks in the pursuit of their objectives, different avenues of opportunities arise to help optimize their collateral utilization.

By leveraging a reliable and analytical facilitator that automatically calculates and pledges excess collateral to BNY Mellon Triparty deals, firms can manage their use of collateral strategically and generate overnight funding to support their trading and investing goals. Automatic calculations and bulk pledge and release functions improve operational efficiencies for client users.

Efficiently manage the pledging of DTC collateral for BNY Mellon triparty allocations

The DTC Pledge Module within impact ^SM offers clients the ability to streamline and automate the pledge and release of DTC collateral to the Bank of New York Mellon (BNYM) to meet industry obligations (i.e.Triparty allocations/fills).

DTC Pledge acts as a command center within impact to monitor and perform free pledge and release of collateral. Users will be able to view recommended pledge and release amounts on the pledge dashboard. Users can either submit bulk movements for all eligible securities or select individual securities to submit pledge and release requests to DTC.

DTC PLEDGE PROCESSING BENEFITS:

• Improve collateral utilization by allowing firms to use their excess DTC collateral for BNYM Triparty deals, enabling firms to borrow cash to fund daily activity.
• Provide a link between impact and DTC to facilitate the bulk transfer of securities between designated Pledgor and Pledgee accounts.
• Seamless integration with existing functionality and includes a new end of day pledge activity report.
• Easily reconcile Pledgor and Pledgee account positions between impact and DTC.
• View collateral excess and deficits through the pledge dashboard, and initiate pledge and release movements based on recommended calculations.
• Monitor and view pledge and release message statuses in real-time on the pledge status tab. Provide the ability for users to view messages from DTC and display the status for each pledge/release movement initiated from the dashboard.

Gain control and reduce settlement risk through the pledge dashboard (PLDB)

Pledge Dashboard Summary Tab

• Real-time display of free and pledge box positions
• View positions allocated to triparty deals
• Projected deliveries and receives from the free box are calculated to automatically provide recommended pledge/release amounts
• Pending buckets are provided to show movements in progress between depositories

Pledge Dashboard Summary Tab

• View message statuses to reduce settlement risk
• Initiate pledge and release movements to create depository movement entries (DME)
• Monitor DME statuses in real-time from the Pledge Status tab
• Receive detailed error messages provided to quickly identify and manage exceptions

THE PLEDGE DASHBOARD (PLDB)

A highly customizable display for users to view security availability in real time, and immediately initiate collateral movements between depository accounts.